# In the matter of FORTUNE SPIRIT LIMITED

> NCLT judgment dated 2025-09-09. Citation: TCN-2025-NCLT-01340. IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 9 Sept 2025
- **Citation:** TCN-2025-NCLT-01340
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-cuttack/fortune-spirit-limited-f1ec2d3e

## Summary

### Background

IDBI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Fortune Spirit Limited due to a financial debt of Rs. 18,50,93,177.22.

## Facts

IDBI Bank Limited filed an application to initiate CIRP against Fortune Spirit Limited under Section 7 of the IBC.

The Corporate Debtor had approached the Financial Creditor for a working capital limit of Rs. 15 Crore in 2014.

The Financial Creditor sanctioned a loan of Rs. 15 crores in 2014, which was later renewed and brought down to Rs. 12 crores.

The loan account of the Corporate Debtor was declared as NPA on 31.03.2021.

The Financial Creditor issued a Demand Notice under Section 13(2) of the SARFAESI Act and also issued Possession Notices.

The Corporate Debtor made an OTS proposal for Rs. 10 crores, which was later revised to Rs. 11 crores.

The cheque issued by the Corporate Debtor for the OTS amount was dishonoured.

…

## Issues and analysis

### Issue 1: Whether the application is barred by Section 10A …

**Ratio:** Section 10A of the IBC suspends the initiation of CIRP for defaults occurring during a

…

**Reasoning:** The Corporate Debtor argued that the default occurred during the period specified in

…

**Interpretation:** Section 10A does not apply to defaults

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**Application:** Since the default occurred on 31.03.2021, after the period specified in Section

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## Parties

- **Judges:** Deep Chandr…; Banwari Lal…
- **Appellants:** IDBI Bank L…; Purna Chandra…
- **Respondents:** Fortune Spirit…
- **Other parties:** SAMBHULAL A…
- **Advocates:** SWARUP RANJAN…; LAXMIDHAR…; +2 more

## Timeline

- **2014-11-07 — Loan Appli…**: Corporate Debtor approached Financial Creditor for a working capital limit of Rs. 15…
- **2014-12-09 — Loan San…**: Financial Creditor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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